Plus   Neg

Nokia Turns To Profit In Q2; Lifts 2020 Non-IFRS EPS View

Nokia Corp. (NOK) reported that its second-quarter profit attributable to equity holders of the parent was 94 million euros or 0.02 euros per share compared to a loss of 193 million euros or 0.03 euros per share in the previous year.

The change was primarily driven by lower amortization of acquired intangible assets, lower restructuring and associated charges, continued progress related to cost savings program, a net positive fluctuation in financial income and expenses and higher gross profit.

Non-IFRS net income per share rose to 0.06 euros from last year's 0.05 euros, primarily driven by higher gross profit in Mobile Access within Networks, continued progress related to our cost savings program and a net positive fluctuation in financial income and expenses. It was partially offset by higher investments in 5G R&D to accelerate product roadmaps and cost competitiveness in Mobile Access and a net negative fluctuation in Nokia's venture fund investments.

Both non-IFRS and reported net sales in the second-quarter declined to 5.1 billion euros from 5.7 billion euros last year, impacted by COVID-19 and unique dynamics in China.

On a constant currency basis, both non-IFRS and reported net sales decreased 11%. Excluding one-time licensing net sales, net sales decreased 10% on both a non-IFRS and reported basis.

In the latest-quarter, the company estimated that COVID-19 had an about EUR 300 million negative net impact on its net sales; with the majority of these net sales expected to be shifted to future periods, rather than being lost.

Looking for fiscal year 2020, the company now expects non-IFRS earnings per share to be 0.25 euros plus or minus 5 cents, compared to the prior outlook of 0.23 euros plus or minus 5 cents.

For Long term period, the company expects an earnings-based growing dividend of about 40% to 70% of non-IFRS earnings per share, taking into account Nokia's cash position and expected cash flow generation.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Uber Technologies Inc. (UBER) Wednesday reported a first-quarter loss that narrowed from last year, despite revenues dropping 16%, reflecting a gain from sale of self-driving unit. The ride-hail service's fourth-quarter loss was narrower than Wall Street estimates, but revenues fell short of expectations.... Social media giant Facebook's Workplace business tool has breached the seven million paid subscribers mark at a time when jobs have gone remote and is now the new normal amid the ongoing pandemic. The number of paid subscribers has grown 40 percent from last year. General Motors Co. (GM) Wednesday reported a profit for the first-quarter that surged from last year, driven by strong price and mix performance in North America, strong credit and residual value performance at GM Financial, as well as the industry recovery in China. Earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.
Follow RTT